Ratings bodies warn on Mexico

EMERGING markets took a hit yesterday, as ratings agency Moody&rsquo;s put out a warning on India, and Fitch cut its rating on Mexico. <br /><br />Moody&rsquo;s warned that the deteriorating credit conditions in the banking system in India had created fears that problem loans will increase, while banks&rsquo; profitability will weaken. India&rsquo;s banking system, which is largely state-owned, has not been hit too severely by the credit crunch, and has won wide applause for its conservative approach. But Moody&rsquo;s has maintained a negative outlook on the Indian banking system.<br />